Free offshore bond guide

If you're a higher rate taxpayer an offshore with profit bond could mean you can decide when, and how much tax you have to pay on it. This is because they allow you to defer paying tax until you retire when you're likely to be a standard rate taxpayer.

Award-winning independent financial adviser Chartwell has a free, new guide to this subject. 'Offshore With Profit Bond Guide' written by Patrick Connolly, Chartwell's associate director, covers all aspects of investing in offshore with profit bonds including what an offshore with profit bond is, what the tax advantages are to both onshore and offshore investors, compares taxation for UK residents and explains how to put a bond into trust. With profit bonds, both onshore and offshore, aim to provide steady growth, cushioned from short-term stockmarket fluctuations.

The guide suggests factors you should consider before investing in a bond including its current annual bonus rate, terminal bonus history of the company you're looking to invest with, allocation rates, charges, the company's financial strength and past with profit performance, and asset allocation. It also analyses products currently available and lists its top six recommendations: Sun Life, Clerical Medical, Scottish Widows, Scottish Mutual, Friends Provident and Equitable Life.

If you decide an offshore with profits bond is for you, you can invest through Chartwell's execution-only service. Chartwell will rebate the 4% commission bonus either directly to you or invest it in the bond.